IPO closes on 11 Sep'26
Manipal Payment and Identity Solutions Limited
Minimum Investment
₹ 14,916 / 44 shares
Our Verdict:
Avoid
- Manipal Payment and Identity Solutions (part of the Manipal Group) is among the largest payment card manufacturers globally and in India, also offering identity, secure and smart-tagging/IoT solutions; revenue from operations grew from ₹1,247.52 crore (FY24) to ₹1,326.75 crore (FY26), with EBITDA margin expanding from 28.04% to 33.60% over the same period.
- Despite steady revenue and EBITDA growth, PAT actually fell from ₹282.21 crore (FY25) to ₹253.46 crore (FY26), and Return on Equity declined sharply from 55.08% to 29.35% — largely reflecting a much larger equity base following the Company's near-total repayment of borrowings (from ₹472.87 crore in FY25 to just ₹0.42 crore in FY26) rather than weaker operations.
- Customer concentration has genuinely improved: the top 10 customers' share of revenue fell from 62.51% (FY24) to 58.67% (FY26), a positive trend, though the business remains reliant on a small number of large institutional relationships.
- Governance and legal exposures are worth understanding: the Company has a history of RBI non-compliance (delayed reporting and refund obligations, resolved via a compounding order), a Promoter has provided guarantees for a Promoter Group entity's financing, and the same Promoter is separately involved in litigation with an amount at stake of roughly USD 77.46 million.
- Genuine scale and category leadership in payment card manufacturing, improving margins, and a much cleaner balance sheet support the fundamentals, but the declining PAT and return ratios despite topline growth, along with the disclosed promoter-level legal and guarantee exposures, are real considerations that go beyond the usual customer-concentration risk seen elsewhere in this series.
About the company
Founded in
1 Jan'08
Managing director
Kukkundoor Girish Kini
- Manipal Payment and Identity Solutions (formerly MCT Cards & Technology Limited) provides payment solutions, identification solutions, secure solutions, and smart tagging and IoT solutions to banks, fintechs, non-banking finance companies and governments, across domestic and international markets.
- The Company's payment solutions include payment cards, cheque solutions, NFC/QR codes and payment-enabled wearables; identification solutions include driving licences, registration certificates and national identity cards; secure solutions include secure logistics and insurance policy personalisation; and smart tagging/IoT solutions include excise labels, RFID tags and anti-counterfeiting solutions.
- The Company serves customers through 10 facilities and 5 central card processing centres across India, and has exported products to countries including the UK, Singapore, Bahrain, Hong Kong, Oman, Maldives, Mauritius, South Africa, Bangladesh, Brazil, Bolivia, Nigeria, Nepal, Sri Lanka, the UAE and parts of Europe.
- Promoters: T. Satish U. Pai, Sandhya S. Pai, Tonse Gautham Pai, Manipal Technologies Limited, Manipal Media Network Limited, Tridevitha Consultancy Services Private Limited and Tridevita Family Trust – 2017; the Company is led operationally by Executive Director & CEO Kukkundoor Girish Kini.
STRENGTHS
- Among the Largest Payment Card Manufacturers Globally: One of the largest manufacturers of payment cards, both globally and in India, in FY26, backed by the Manipal Group.
- Revenue and Margin Growth: Revenue from operations grew from ₹1,247.52 crore (FY24) to ₹1,326.75 crore (FY26); EBITDA margin expanded from 28.04% to 33.60% over the same period.
- Diversified Product Portfolio Across Payments, Identity and Security: Offers payment cards, identification solutions (driving licences, registration certificates, national ID cards), secure solutions and smart tagging/IoT solutions, serving banks, fintechs, NBFCs and governments.
- Improving Customer Diversification: Revenue concentration among the top 10 customers fell from 62.51% (FY24) to 58.67% (FY26), and among the top 5 customers from 43.03% to 38.58%.
- Sharply Reduced Borrowings: Total borrowings fell from ₹472.87 crore (FY25) to just ₹0.42 crore (FY26), reflecting a substantial deleveraging of the balance sheet.
RISK FACTORS
- Customer Concentration: Top 10 customers contributed 58.67% of FY26 revenue from operations; loss of key customers could adversely affect results.
- § Promoter Guarantee Exposure to Group Entity: Promoter Tonse Gautham Pai and Group Company Primacy Industries Private Limited have provided personal and corporate guarantees, respectively, for financing arrangements availed by MVP Group International Inc., a Promoter Group member; invocation of these guarantees poses a material risk.
- Significant Legal Exposure Involving a Promoter: One of the Company's Directors and Promoters, Tonse Gautham Pai, is involved in litigation with an amount at stake of approximately USD 77.46 million, separate from other disclosed litigation involving the Company and its promoters.
- Past RBI Non-Compliance: The Company has previously been non-compliant with RBI rules relating to securities issuance, including delayed reporting and delayed refund of excess share application money, and had to file a compounding application with the RBI.
- Declining PAT Despite Revenue and EBITDA Growth: PAT fell from ₹282.21 crore (FY25) to ₹253.46 crore (FY26) even as revenue and EBITDA both grew, and Return on Equity declined sharply from 55.08% to 29.35% over the same period.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹805 crore
Fresh Issue
₹ ₹320 crore
OFS
₹ ₹485 crore
Price range
₹ 322 - 339
Lot size
44 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹320 crore) are proposed to be used for: (i) capital expenditure for purchasing and setting up new and second-hand equipment across the Company's Manipal, Chennai, Noida, Navi Mumbai, Howrah and Chhattisgarh facilities (~₹238.43 crore); and (ii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
9 Sep'26
Bidding close
11 Sep'26
Allotment date
15 Sep'26
Refund date
16 Sep'26
Listing
17 Sep'26
IPO Reservations
Qualified institutional buyers
75%
Non-institutional investors
15%
Retail individual investors
10%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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